The imminent legal battle between the Interactive Media Entertainment & Gaming Association (iMEGA) and US Justice authorities over the legitimacy of the Unlawful Internet Gambling Act (UIGEA) may come to a standstill after reports that the US have applied to have the case thrown out of court.

US authorities gave 'Lack of jurisdiction' and 'failure to state a claim upon which relief can be granted' as reasons why the hearing, scheduled for September 26th in a New Jersey federal court, should be abandoned.

iMEGA’s list of demands include a temporary restraining order preventing the introduction of the UIGEA, which makes it illegal for banking facilities to accept money transfers to and from online gambling sites, as the act still exists without a regulatory framework despite coming into effect in October 2006.

On August 21, the US government representative stated that it will move for the case to be dismissed at a separate September 4 hearing.